Several independent directors on the McLeod Russel India board have stopped pointing out health and aging. However, they continue to serve on the boards of other companies. This issue has been branded as a shareholder management company (SES), which calls for more accountability by independent directors.
More than half a dozen individuals have resigned from the tea company's board claiming reasons such as "age & # 39 ;," severe health issues "and" poor health. "At the same time, nearly all. All of the directors continue to hold on to their manager at other companies, while some have taken on new responsibilities.
"In the case of the resignation of independent directors, especially those who have taken over new directors of the company resignation, SES considers their action to retain other directors as well as adding new ones to compensate for common losses." "or the" quota "of companies caused by their resignation, is a clear case of corporate shoplifting," the company said in a statement. SES said some directors jump ship from companies that have problems with their personal performance. . "The above directors failed the shareholders and failed to perform their duties of duty."
McLeod Russel shares fell more than 90 percent last year.
Independent directors leaving weak companies are not a new model. However, in order to bring about further accountability, the Securities and Exchange Board of Securities and Exchange Board of India (Sebi) forced the directors to present the reasons for the suspension. Also, they set a limit on the number of general directors a person can take.
Management experts say that strict action can be taken against only directors who follow the requirements legally on paper but not in the spirit.
SES is wondering if factors such as health issues, time constraints and age are justification for releasing a company's current financial health, the statement said.